In a report on defence procurement, the Commons Public Accounts Committee describes the Ministry of Defence's handling of major spending projects as "weak in almost every aspect".

The committee studied the 25 major defence purchases in 1997 and found final costs on average 9.1% higher than first estimated at £3,084m, and that projects overran delivery dates by an average of 37 months.

Looking back 100 years

David Davis: "The picture has got worse in recent years"

The committee, which acts as a spending watchdog, found similar problems had been going on for years. Its chairman Tory MP David Davis said: "This report includes a look back at the procurement performance of the Ministry of Defence over the past century.

"It is very worrying to see that problems highlighted by our predecessors over many years are still occurring, indeed in recent years the picture has actually worsened. Good basic management practices must be the bedrock on which future procurement initiatives should be based."

The report says most project delays and cost overruns were caused by inflation and changing needs of the armed forces midway through contracts. Projects included the Challenger Tank, the Eurofighter aircraft, Apache helicopters, Astute Class submarines and a new radio system for troops.

Apache helicopters: The MoD bought them in 1997

The report concludes: "We consider it unacceptable that the overall cost overrun on the 25 projects is over £3 billion and that the cost, in cash terms, is upwards."

The Ministry of Defence said it is to introduce streamlined management teams and more communication between contractors and the department to improve the way contracts are handled.

Labour: Don't blame us

The ministry insisted action was already being taken to stop the problems which had existed in the past. A spokesman said that although the committee's report contains heavy criticism of MoD project management, its members "also recognised that the department plans to tackle the problems under the 'Smart Procurement' initiative which was part of the Strategic Defence Review".

John Spellar: New Labour not to blame

The spokesman added: "Implementation of that initiative is progressing satisfactorily. We already have a number of pilot integrated project teams in place and they are trialling a wide range of new working practices."

Defence Minister John Spellar stressed that the committee's criticisms did not apply to the present Labour government, which took office in May 1997: "Let's be clear that this report covers the period up to March 1997."

"My government came into power determined to tackle the problems of cost overrun and delay in defence procurement," he said. "This is precisely why we started the Smart Procurement Initiative during the Strategic Defence Review, when we identified many of the same problems as the committee.